Bad news, Alberta! Fuel tax is set to be reinstated from October 1 so gas is about to get pricier in the province.
In a notice to fuel sellers on September 21 seen by Narcity, the Alberta Tax and Revenue Administration (TRA) said that the collection of fuel tax would start again on October 1, after it was dropped earlier this year.
The good news is that it won't be as expensive as before. The fuel tax will now be collected at the rate of 4.5 cents a litre as opposed to the 13 cents per litre Albertans were paying in March 2022.
According to the notice, the fuel tax rate will be reviewed on a quarterly basis, and "may increase or decrease depending on the average price of West Texas Intermediate."
Any changes to the fuel tax rate will be "announced as and when required," the TRA said.
In a statement, Alberta's finance minister, Jason Nixon, said that despite the return of fuel tax, Albertans would still be saving "8.5 cents on every litre of gas and diesel" for the next three months, compared to March 2022.
The fuel tax relief program will continue to save Albertans money on gas "as long as the average price of WTI is above US$79.99 per barrel," he explained.
Nixon said the global economy had slowed in the four-week period before September 15 and WTI averaged $89.26 per barrel, leading to the return of fuel tax.
Gas prices in Alberta are currently around 136.9 cents a litre in Calgary and 128.9 cents a litre in Edmonton, according to GasWizard.
The government announced it would be dropping fuel tax in Alberta in April due to "uncertainty caused by Russia’s invasion of Ukraine” and the federal government’s plan to raise the carbon tax.